A timeshare is laced with the promise of luxury holidays in beautiful locations without the full cost of real estate ownership. While some timeshare offerings ring true, many have proven to be too good to be true. The timeshare industry has seen a rise in fraudulent activity, with several tactics being used to scam and defraud unsuspecting victims. In this article, we look at the most common timeshare scams that every buyer should look out for.
Scam 1: The High-Pressure Sales Tactic
This tactic is designed to make us rush into buying by creating a false sense of urgency.
A Sense of Urgency
We’ve all been exposed to the ‘today only’ or ‘one-time offer’ tactic, where we’re told we’ll lose out unless we buy now. The high-pressure tactic uses emotional manipulation to push for a quick deal. Scammers know that it’s in people’s nature not to want to miss out, and will use this fear to build a sense of urgency into the sale. A sense of urgency is designed to prevent us from taking the time we need to properly consider the timeshare being offered. It’s a common internet scam tactic and should always be treated with caution.
Limited Availability
When we’re tricked into believing that something is scarce, we usually want it more. This rings true for timeshare scams, where we can be tricked into believing that other people have already taken advantage of an unbelievable deal. This can lead us to make a rushed, emotionally-led decision in order to secure the offer on the table.
Failing To Explain The Long-term Commitment
All timeshares are designed around a long-term commitment. Be cautious of a salesperson who fails to explain the long-term implications involved with the timeshare on offer. If they aren’t willing to go through the contract and give you time to consider the offer, then it could be a timeshare scam.
Scammers will often try and hide the true cost of timeshare ownership. These hidden costs can add up over time and need to be carefully considered.
Emphasizing The Initial Purchase Price
Scammers often try to highlight the initial purchase price, making it seem like there are no ongoing costs to consider. This can make the timeshare look attractive, but keep in mind that the upfront costs are a minor part of your total ongoing timeshare expense. You need to know what all the costs are before going ahead.
Ongoing Concealed Costs
Annual timeshare maintenance fees are often omitted or downplayed. These mandatory fees increase every year and can cost more than you might realize. Keep in mind that special expenses for property repairs or upgrades may also be levied. In the event that you want to exchange your timeshare, be sure to expect an associated fee. Always fine comb the timeshare contract to pick up on all hidden fees before going ahead. You must have a good idea as to the overall financial commitment required.
Another tactic, the misrepresentation of the timeshare being offered. The benefits and value can easily be exaggerated without being substantiated.
Timeshare scammers can be guilty of making the exchange process sound quick and easy. The reality is that it can be quite a challenge. Exchanges involve extra fees, limited availability, and can take a considerable amount of time to go through. You need to understand all the exchange protocol upfront before committing.
Overinflated Investment Value
When it comes to investing, we all like to believe that we’re making a high value-based investment. Timeshare scammers may promise high returns along with an unrealistic appreciation value. It’s important to view timeshare as a prepaid vacation plan and not a conventional investment. The timeshare resale market is generally weak, which means that you may struggle to get back your initial purchase price.
Scam 4: Book Anywhere, Anytime
Any claim that you will be able to book timeshare wherever and whenever you want is a myth. The nature of timeshare works on availability windows, which take popularity and maintenance schedules into account. Many timeshare agreements have block-out dates, which prevent you from booking over certain times. You may also be forced to book through your timeshare system, adding to booking restrictions. Concerned it may be a timeshare scam? Be sure to find out the location and seasonal limits on your timeshare before going ahead.
Scam 5: Big Discount’s On Airfares & Car Rentals
A sales scammers aim is to always exaggerate the timeshare’s benefits. Any offer of largely discounted flights, car rentals, or cruises should be met with caution. By doing some browsing, you may find that some claimed discounts are often already available on the internet. Chances are that the sales rep most probably hasn’t secured special discounts with airline carriers. Deep discounts may be too good to be true and should be meticulously studied.
Be An Informed Buyer
The key to finding the right timeshare is to be vigilant when presented with an offer. A timeshare that looks too good to be true probably is. This onus lies on you to do proper research. Always ask for detailed information and a copy of the contract. Take your time and ask all questions you can think of. You should never feel pressurized or desperate when it comes to buying timeshare. Making an informed decision goes a long way to protecting you from falling for a scam.
Staying updated about the latest scams will prevent you from falling for one. Antifraudnews.com is a leading anti-internet and anti-fraud information blog. Stay in the know with the latest on timeshare scams, romance scams, fraudulent Websites, and any other scam that might be out there. As a proud member of the Anti-Scam Alliance, Antifraudnews.com will help protect you and your well-deserved money. Be sure to share their anti-fraud blog with your family and friends to help more people prevent being scammed.